Corrupted iPod Classic data recovery? In need of a guru.

So, I have an iPod classic, and it seems to work almost entirely fine - it occasionally doesn't respond, but it has 11,000+ songs on it, and is a couple years old.
My issue here is that there is plenty (read: more than $10,000 worth) of store-bought CD music on there (some of it awfully rare) and I am going to lose it all if I can't figure out how to rescue it.
iTunes calls the iPod corrupted, Disk Drill and Drive Genius (free versions of both) don't seem to be doing much good.
The only thing that MAY have been progress that I did was copying the drive to a dmg file, but the dmg won't mount ("no mountable file systems" error).
I feel so close to being able to fix this issue, and the music is there to listen to, so why is it so hard to get to it??!!
I have done the following things to try to fix the issue:
Charged iPod fully before connecting
Connected in Disk Mode
Ran Diagnostic Mode
(HDD Smart test returned the following:
Retracts: 55
Reallocs: 56
Pending Sectors: 744
PorweOn Hours: 93
Start/Stops: 29303
Teamp: Current 34C
Temp: Min 10c
Temp: Max 50c)
At this point, I don't know what to do to either the .dmg on the computer or the ipod itself so I can have my music again.
I wouldn't be freaking out, but again, 10 grand is on the line.
Please help!!!
-Sam

From your Smartdata report, it looks like your iPod hardisk is dead, it is hardware like dying drive, or weak power to the drive.
The  3rd party HD repair tools, wont help, as the HD cant get the right spin to write/read the boot cluster, see the high Start/Stop numbers counts, the high pending is also indicative of bad clusters, failing to write data to the HD.
There MIGHT be some vendors who can recover your data, but the hardisk is a write off., I google "ipod hardisk data recovery" and got this site, so perhaps you can find one in your country.
Have a nice day!

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